{"id":765752,"date":"2026-03-04T23:44:00","date_gmt":"2026-03-05T04:44:00","guid":{"rendered":"https:\/\/www.capgemini.com\/us-en\/?p=765752&#038;preview=true&#038;preview_id=765752"},"modified":"2026-06-29T23:46:12","modified_gmt":"2026-06-30T04:46:12","slug":"choosing-the-right-erp-core-sap-microsoft-dynamics-365-or-both-with-an-ai-first-two-tier-strategy","status":"publish","type":"post","link":"https:\/\/www.capgemini.com\/us-en\/insights\/expert-perspectives\/choosing-the-right-erp-core-sap-microsoft-dynamics-365-or-both-with-an-ai-first-two-tier-strategy\/","title":{"rendered":"Choosing the right ERP core: SAP, Microsoft Dynamics 365, or both with an AI-first two-tier strategy"},"content":{"rendered":"\n<header class=\"wp-block-cg-blocks-hero-blogs header-hero-blogs\"><div class=\"container\"><div class=\"hero-blogs\"><div class=\"hero-blogs-content-wrapper\"><div class=\"row\"><div class=\"col-12\"><div class=\"header-title\"><h1>Choosing the right ERP core: SAP, Microsoft Dynamics 365, or both with an AI-first two-tier strategy<\/h1><\/div><\/div><\/div><\/div><div class=\"hero-blogs-bottom\"><div class=\"header-author\"><div class=\"author-img\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/us-en\/wp-content\/uploads\/sites\/30\/2023\/06\/Oleksandr-Krasnoshchok-1.jpg?w=200&amp;quality=10\" alt=\"\" loading=\"lazy\"\/><\/div><div class=\"author-name-date\"><h5 class=\"author-name\">Oleksandr Krasnoshchok<\/h5><h5 class=\"blog-date\">2 Mar 2026<\/h5><\/div><\/div><div class=\"brand-image\"><\/div><\/div><\/div><\/div><\/header>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"grid-container\"><div class=\"col-12 col-md-2\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?=http:\/\/capgeminiucwe.develop\/?post_type=press-release&amp;p=179\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-tw\"><a href=\"https:\/\/twitter.com\/intent\/tweet?=http:\/\/capgeminiucwe.develop\/?post_type=press-release&amp;p=179\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-tw\"><\/i><span class=\"sr-only\">Twitter<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/shareArticle?=http:\/\/capgeminiucwe.develop\/?post_type=press-release&amp;p=179\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div><div class=\"article-text article-quote-text\">\n<h2 class=\"wp-block-heading\" id=\"h-defining-the-right-enterprise-core-in-an-ai-first-agentic-erp-world\">Defining the right enterprise core in an AI-first, agentic ERP world<\/h2>\n\n\n\n<p>Enterprise resource planning (ERP) decisions today are no longer limited to selecting a system of record. Enterprises are redesigning their core to become intelligent, agile, and AI-enabled.<\/p>\n\n\n\n<p>The question has shifted from \u201cWhich ERP is better?\u201d to \u201cHow should we design the right AI-first ERP strategy for our business?\u201d<\/p>\n\n\n\n<p>Many global organizations now operate a two-tier ERP model:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A global ERP core that ensures scale, governance, and standardization<\/li>\n\n\n\n<li>A second tier that enables speed, flexibility, and faster innovation for subsidiaries, regions, or newly-acquired entities<\/li>\n<\/ul>\n\n\n\n<p>Within this context, ERP assessment becomes a strategic design exercise, not a technology comparison. The objective is to build a fit-for-purpose, AI-enabled ERP landscape that supports growth, resilience, and continuous change.<\/p>\n\n\n\n<p>This is the foundation of Capgemini\u2019s AI-first two-tier enterprise core.<\/p>\n\n\n\n<p>Recent Capgemini research reinforces this shift toward AI-first ERP architecture, \u201cEnterprises are embracing an AI-first two-tier ERP strategy, a transformative approach that blends centralized governance with localized innovation. The result is faster time-to-value, reduced complexity, and scalable innovation.\u201d<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-start-with-the-right-erp-assessment-framework\"><strong>Start with the right ERP assessment framework<\/strong><\/h4>\n\n\n\n<p>A successful ERP journey begins with clarity, on business priorities, operating models, and value expectations.<\/p>\n\n\n\n<p>Capgemini\u2019s ERP assessment framework evaluates ERP options across six business-critical dimensions:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Business strategy alignment<\/strong><br>How well does the platform support the target operating model, growth plans, and transformation agenda?<\/li>\n\n\n\n<li><strong>Process fit and standardization<\/strong><br>Coverage of core processes such as finance, supply chain, procurement, and manufacturing, with a focus on fit-to-standard.<\/li>\n\n\n\n<li><strong>Alignment with agentic enterprise vision<\/strong><br>Readiness for AI-enabled workflows and autonomous agents within core processes<\/li>\n\n\n\n<li><strong>Total cost of ownership (TCO)<\/strong><br>Licensing, implementation, integration, change management, and scalability.<\/li>\n\n\n\n<li><strong>User adoption and change readiness<\/strong><br>Ease of use, user experience, and the effort required to drive adoption at scale.<\/li>\n\n\n\n<li><strong>Technology, data, and integration readiness<\/strong><br>Alignment with existing IT landscapes, data platforms, collaboration tools, and AI capabilities.<\/li>\n<\/ol>\n\n\n\n<p>This underscores why ERP assessment must evaluate not only system capabilities, but also AI readiness within business workflows.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-understanding-erp-roles-in-a-two-tier-model\"><strong>Understanding ERP roles in a two-tier model<\/strong><\/h4>\n\n\n\n<p>Modern ERP platforms are increasingly intelligent, cloud-based, and AI-enabled. However, their strengths align to different enterprise needs.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>SAP S\/4HANA<\/strong><br>Well suited for complex, regulated, and large-scale global operations requiring deep functional coverage and standardized processes.<\/li>\n\n\n\n<li><strong>Microsoft Dynamics 365 Finance &amp; Operations<\/strong><br>Designed for agility and faster time-to-value, with strong integration across productivity, analytics, and low-code platforms. The platform is integrated with Dynamics 365 Customer Engagement to enhance customer experience in addition to running the core business operations.<\/li>\n<\/ul>\n\n\n\n<p>In practice, many enterprises are not choosing one over the other. Instead, they are intentionally assigning roles or emerge during mergers and acquisitions to a model with two or more ERPs such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>SAP, which often serves as the global digital backbone running the core operations<\/li>\n\n\n\n<li>Microsoft Dynamics 365, an agile and agent-enabled second-tier ERP serving subsidiaries, regions, or post-merger entities<\/li>\n<\/ul>\n\n\n\n<p>The right answer depends on where scale is needed, and where speed matters more. Importantly, intelligent ERP is increasingly delivering measurable financial returns. According to <a href=\"https:\/\/www.capgemini.com\/insights\/research-library\/unlock-value-with-intelligent-erp-apps-and-sap-ai-agents\/\">Capgemini Research Institute<\/a>, \u201cWith 62% of organizations increasing investment in generative AI and those scaling across functions realizing up to 1.7x ROI, AI-driven ERP innovation is already delivering tangible business value.\u201d<\/p>\n\n\n\n<p>This reinforces that embedding AI into ERP platforms is not a future aspiration, it is a current competitive differentiator.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-a-structured-value-first-assessment-approach\"><strong>A structured, value-first assessment approach<\/strong><\/h4>\n\n\n\n<p>Capgemini\u2019s methodology connects strategy to execution, ensuring ERP decisions deliver measurable outcomes.<\/p>\n\n\n\n<p><strong>Phase 1: Discover<\/strong><\/p>\n\n\n\n<p>The journey starts with understanding the current landscape and future ambitions. Core processes are benchmarked against industry standards using Capgemini accelerators. These include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Finance to Manage (F2M)<\/li>\n\n\n\n<li>Procure to Pay (P2P)<\/li>\n\n\n\n<li>Order to Cash (O2C)<\/li>\n<\/ul>\n\n\n\n<p>The output is a capability map highlighting opportunities for standardization, automation, and AI enablement.<\/p>\n\n\n\n<p><strong>Phase 2: Evaluate<\/strong><\/p>\n\n\n\n<p>ERP platforms are assessed side-by-side across:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Business process fit and standard adoption potential<\/li>\n\n\n\n<li>Cost and licensing implications<\/li>\n\n\n\n<li>Operating model alignment<\/li>\n\n\n\n<li>Integration with data, cloud, and AI ecosystems<\/li>\n\n\n\n<li>Automation and intelligence potential<\/li>\n<\/ul>\n\n\n\n<p>This results in a fact-based fit-gap and TCO model, enabling objective, confident decision-making.<\/p>\n\n\n\n<p><strong>Phase 3: Recommendation<\/strong><\/p>\n\n\n\n<p>Insights are consolidated intoa personalized recommendationsupported by hard facts and learnings about your business. The recommendation will reveal if two-tier ERP strategy is feasiblefor your business. Note that two-tier strategy is not always feasible for all organizations.<\/p>\n\n\n\n<p><strong>Phase 4: Define the roadmap<\/strong><\/p>\n\n\n\n<p>Post-recommendation,<strong> ERP roadmap is developed<\/strong>, defining:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Which ERP fits to which part of your business<\/li>\n\n\n\n<li>Prioritized AI-first agentic scenarios implementation and its impact on your operating model<\/li>\n\n\n\n<li>Deployment approach (global template, so a big bang or phased rollout)<\/li>\n\n\n\n<li>Value realization milestones<\/li>\n\n\n\n<li>Change and adoption strategy<\/li>\n<\/ul>\n\n\n\n<p>The outcome is a clear, actionable path from ERP decision to business value.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-why-multi-erp-expertise-matters\"><strong>Why multi-ERP expertise matters<\/strong><\/h4>\n\n\n\n<p>ERP assessments demand neutrality and experience.<\/p>\n\n\n\n<p>As a global strategic partner for many ERPs such as SAP, Microsoft, Oracle, among others, Capgemini brings deep, real-world delivery experience across multi-ERP landscapes. This enables:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Objective recommendations without vendor bias<\/li>\n\n\n\n<li>Faster time-to-value using proven templates and accelerators<\/li>\n\n\n\n<li>Industry-specific insights across regions and sectors<\/li>\n<\/ul>\n\n\n\n<p>This dual capability is critical for enterprises designing AI-first two-tier ERP architectures.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-making-change-stick-people-processes-and-platforms\"><strong>Making change stick: people, processes, and platforms<\/strong><\/h4>\n\n\n\n<p>ERP success is not driven by technology alone. Capgemini\u2019s delivery approach emphasizes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Shared business and IT ownership<\/li>\n\n\n\n<li>Unified governance and release management<\/li>\n\n\n\n<li>Continuous enablement through knowledge academies<\/li>\n\n\n\n<li>Strong executive oversight through steering structures<\/li>\n<\/ul>\n\n\n\n<p>This ensures ERP transformation scales sustainably, across teams, regions, and partners.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-making-confident-erp-decisions\"><strong>Making confident ERP decisions<\/strong><\/h4>\n\n\n\n<p>Choosing between SAP, Dynamics 365, or both is not a software debate. It is an opportunity to design a smarter, more resilient enterprise core. By combining structured assessment, AI-ready architecture, and two-tier ERP design, organizations can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Balance global consistency with local agility<\/li>\n\n\n\n<li>Accelerate mergers &amp; acquisitions integration<\/li>\n\n\n\n<li>Reduce cost and complexity<\/li>\n\n\n\n<li>Build a foundation for AI-driven operations<\/li>\n<\/ul>\n\n\n\n<p><strong>Capgemini\u2019s AI-first two-tier enterprise core<\/strong> brings these elements together, enabling enterprises to modernize with confidence.<\/p>\n\n\n\n<p>\ud83d\udc49 <em><a href=\"https:\/\/www.capgemini.com\/solutions\/ai-first-two-tier-enterprise-core\/\">Explore how an AI-first two-tier ERP strategy can work for your organization.<\/a><\/em><br>\ud83d\udc49 <em>Connect with Capgemini to start an ERP assessment discussion.<\/em><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<section class=\" section section--expert-slider wrapper-people-slider wp-block-cg-blocks-wrapper-people-slider\"><div class=\"container\"><div class=\"row\"><div class=\"content-title col-12 col-md-8\"><h2 data-maxlength=\"34\" class=\"people-heading-title\">Author<\/h2><\/div><\/div><\/div><div class=\"slider slider-boxed\"><div class=\"container\"><div class=\"slider-window\"><div class=\"slider-list\">\t\t<div class=\"slide\">\n\t\t\t<div class=\"box\">\n\t\t\t\t<div class=\"row\">\n\t\t\t\t\t<div class=\"col-md-6 col-lg-4 box-img-wrapper\">\n\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.capgemini.com\/us-en\/wp-content\/uploads\/sites\/30\/2023\/06\/Oleksandr-Krasnoshchok-1.jpg\" alt=\"Oleksandr Krasnoshchok\"\/>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"col-md-6 col-lg-8 box-inner\">\n\t\t\t\t\t\t<div class=\"row title-social-media-header\">\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 mbl-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a aria-label=\"Linkedin\" target=\"_blank\" title=\"Opens in a new window\" href=\"https:\/\/www.linkedin.com\/in\/oleksandrkrasnoshchok\/\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 box-container\">\n\t\t\t\t\t\t\t\t<div class=\"box-title\">\n\t\t\t\t\t\t\t\t\t<h3 class=\"people-profile-title\">Oleksandr Krasnoshchok<\/h3>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span>Global DCX &amp; PBS \u2013 GTM and Value Lead, Capgemini<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 social-box-container dkt-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a aria-label=\"Linkedin\" target=\"_blank\" title=\"Opens in a new window\" href=\"https:\/\/www.linkedin.com\/in\/oleksandrkrasnoshchok\/\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"people-info\">Oleksandr is a global leader for several value propositions for our clients, such as\nValue and Competitive Advantage Framework, that focus on value creation, business model re-invention, process optimization, and identification of new competitive advantages. He helps Capgemini clients to envision, strategize, and realize business value\n made possible with AI-first Microsoft business applications across customer experience and enterprise core\/ERP domains. Oleksandr\u2019s background is in innovation and entrepreneurship, software development, and recently, Executive MBA.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div><\/div><\/div><div class=\"slider-nav\"><button class=\"slider-prev inactive\" aria-label=\"Slider-previous\" tabindex=\"-1\"><\/button><ul class=\"slider-paginator\"><\/ul><button class=\"slider-next\" aria-label=\"Slider-next\"><\/button><\/div><\/div><\/section>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Choosing the right ERP today is less about comparing systems and more about designing an AI-first enterprise core. Many organizations now blend SAP S\/4HANA for global standardization with Microsoft Dynamics 365 for agility in regions or acquisitions. Capgemini\u2019s structured assessment framework helps determine the right ERP or two-tier model by evaluating business alignment, process fit, TCO, and AI readiness. The goal: an intelligent, scalable ERP landscape that accelerates innovation and delivers measurable value.<\/p>\n","protected":false},"author":755,"featured_media":765753,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"cg_dt_proposed_to":[],"cg_seo_hreflang_relations":"[]","cg_seo_canonical_relation":"","cg_seo_hreflang_x_default_relation":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"cg_dt_approved_content":true,"cg_dt_mandatory_content":false,"cg_dt_notes":"","cg_dg_source_changed":false,"cg_dt_link_disabled":false,"_yoast_wpseo_primary_brand":"506","_jetpack_memberships_contains_paid_content":false,"footnotes":"","featured_focal_points":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[321,322],"brand":[506],"service":[243],"industry":[],"partners":[177],"blog-topic":[154,694],"content-group":[],"class_list":["post-765752","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-ai","tag-artificial-intelligence","brand-capgemini","service-data-ai","partners-sap","blog-topic-data-and-ai","blog-topic-enterprise-core"],"yoast_head":"<!-- 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